Credit union member spending outpaced May's inflation spike, but credit card spending lagged the national gain in retail spending, according to a report Thursday from the nation's largest payments CUSO.
Velera's Payments Index showed credit union members whose cards are handled by the CUSO spent 4.4% more on their credit cards in May than a year earlier and 8.5% more on their debit cards.
In both cases, the growth was better than May's 4.2% annual inflation rate, but credit card spending lagged May's 6.1% gain in retail spending, excluding spending on automobiles and parts reported by the Census Bureau Wednesday.
Velera reported gains of 3.1% by credit and 8.5% by debit for April, and 4.8% by credit and 5.9% by debit for March.
"Even with ongoing pressure from higher gas prices and inflation, consumers are continuing to spend," Velera Vice President of Marketing Carrie Stapp said.
This month's report included a "Deep Dive" look at spending by generation.
"Younger consumers, in particular, are showing a stronger pull toward essential categories and digital-first payment experiences, while older segments are maintaining more traditional spending patterns," Stapp said.
Velera said gasoline prices have softened slightly from their 2026 peak in May, but "remain stubbornly high as the conflict with Iran entered its fifth month and continued to contribute to rising inflation." As of June 16, the average price for a gallon of gasoline was $4.05, up 29% from a year earlier and up 38% (or $1.12) since the United States and Israel began their war on Iran Feb. 28.
The average credit card transaction in May was $70.27, up 0.7% from a year earlier, while the average for debit rose 3.3% to $47.76.
Velera bases its Payments Index on data from credit unions that have been processing payments with it since January 2024. This month's report encompassed 3.8 billion transactions valued at $191 billion of credit and debit card activity in the 12 months ending May 31.
Contact Jim DuPlessis at Jim.DuPlessis@arc-network.com.
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